Maximising The Claim For Business Expenses
Make sure you claim the right expenses ...
POSTED BY HELEN BEAUMONT ON 10/04/2019 @ 8:00AM
If you're reviewing your profit and loss report, ensure you deduct all allowable business expenses ...
When updating your profit and loss, ensure you know what business expenses you can and cannot claim!
copyright: andreypopov / 123rf
Many business owners get confused as to what can (and cannot) be deducted. To ensure the maximum allowable deductions, be sure that you:
Remember the 'wholly and exclusively' rule where an expense should exclusively be for the purpose of your business. For example, you can claim workwear such as hiviz or personal protective gear, but you wouldn't be able to claim a nice dress because you could wear it for non-business purposes and is required for common decency.
The trade portion of a private expense can be claimed if it can be proven that part of the expense was used for business. For example, if you work from home, then a portion of your telephone and electricity bills could be claimed, as could a percentage of other household bills if they were considered to be for the purposes of your business.
Be careful what you put through your business account too. As an example, if you are self-employed and go out for lunch with a friend, pay via a private bank account as putting it through the business bank account would mean the lunch isn't deductible.
And also ensure that when you buy something for your business (stationary as an example) then don't make a personal purchase at the same time and try to put the whole thing through as a business expense. HMRC may disallow the whole transaction if they discover it.
It is good practice to always keep your business and personal expenditure separate. Use a business bank account and a personal bank account, and ensure you put the right expenses through the right account!
"Would you like to know more?"
If you'd like to find out more about business expenses and what can (and cannot) be claimed, then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.
Until next time ...
If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!
More about Helen Beaumont ...
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.
When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.
More blog posts for you to enjoy ...